Very important taxpayers

From European Voice's Entre-Nous column

4/1/15, 3:00 AM CET

In Portugal, the Union of Taxation Employees has revealed the existence of a ‘VIP list’ of taxpayers who were accorded special treatment. The list of 100 taxpayers were public figures, media personalities, sports stars and a few politicians, who were, it is alleged, shielded from the prying eyes of low-grade tax inspectors. Only people in the taxation office with high-level clearance could consult the details of those on the list.

This has not played well for Pedro Passos Coelho, the prime minister, who was already embarrassed by revelations that he had failed to pay his own taxes on time. The government maintains that it never approved any such list of VIP taxpayers and never gave any instructions to draw one up. The blame has been attached squarely to the tax authority, whose head, Antonio Brigas Afonso, has resigned. Somewhat belatedly, Passos Coelho’s government has imposed a rigid new regime for taxation and toughened penalties for unpaid back-taxes.